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Wednesday, August 15, 2007

Comptroller general compares US to Roman empire

MrKen has previously posted about the similarity between the Empire that is the current U.S.A. and the Empire that was Rome. "Empire of Debt - The rise of an epic Financial Crisis", (2006) by Bill Bonner & Addisson Wiggin, is a wonderful book that makes a clear and convincing case that the United States is rapidly falling into a decline that mimics the end of the Roman Empire. As I quoted from the Introduction back on 6/30/06,

'Slouching Toward Empire--'

"Institutions have a way of evolving over time -- after a few years, they no longer resemble the originals. Early in the 21 st -century, the U.S.A. is no more like the America of 1776 than the Vatican under the Borgia popes was like Christianity at the time of the Last Supper... "

"Still, while the institutions evolve, the ideas and theories about them tend to be fixed; it is as if people hadn't noticed. In America, all the restraints inhibitions and modesty of the Old Republic have been blown away by the prevailing winds of the new Empire. In their place has emerged a vainglorious system of conceit, deceit, debt and delusion."

"The U. S. Constitution is almost exactly the same document with exactly the same words it had when it was written, but the words that used to bind and chaff have turned into soft elastic. The government that couldn't tax, couldn't spend, and couldn't regulate, can now do anything it wants. The Executive has all the power it needs to do practically anything. Congress goes along, like a simpleminded stooge, insisting only that the spoils be spread around...."

For my previous posts on this subject, please follow this link:
http://mrken45sworld.blogspot.com/search?q=Empire+of+Debt

MrKen notes that the Comptroller General, a non-partisan figure in charge of the Government Accountability Office--often described as the investigative arm of the U.S. Congress-- apparently agrees with the authors & MrKen.

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--From the Financial Times of London---

Learn from the fall of Rome, US warned

By Jeremy Grant in Washington

Published: August 14 2007 00:06

The US government is on a ‘burning platform’ of unsustainable policies and practices with fiscal deficits, chronic healthcare underfunding, immigration and overseas military commitments threatening a crisis if action is not taken soon, the country’s top government inspector has warned.

David Walker, comptroller general of the US, issued the unusually downbeat assessment of his country’s future in a report that lays out what he called “chilling long-term simulations”.

These include “dramatic” tax rises, slashed government services and the large-scale dumping by foreign governments of holdings of US debt.

Drawing parallels with the end of the Roman empire, Mr Walker warned there were “striking similarities” between America’s current situation and the factors that brought down Rome, including “declining moral values and political civility at home, an over-confident and over-extended military in foreign lands and fiscal irresponsibility by the central government”.

“Sound familiar?” Mr Walker said. “In my view, it’s time to learn from history and take steps to ensure the American Republic is the first to stand the test of time.”

Mr Walker’s views carry weight because he is a non-partisan figure in charge of the Government Accountability Office, often described as the investigative arm of the US Congress.

While most of its studies are commissioned by legislators, about 10 per cent – such as the one containing his latest warnings – are initiated by the comptroller general himself.

In an interview with the Financial Times, Mr Walker said he had mentioned some of the issues before but now wanted to “turn up the volume”. Some of them were too sensitive for others in government to “have their name associated with”.

“I’m trying to sound an alarm and issue a wake-up call,” he said. “As comptroller general I’ve got an ability to look longer-range and take on issues that others may be hesitant, and in many cases may not be in a position, to take on.

“One of the concerns is obviously we are a great country but we face major sustainability challenges that we are not taking seriously enough,” said Mr Walker, who was appointed during the Clinton administration to the post, which carries a 15-year term.

The fiscal imbalance meant the US was “on a path toward an explosion of debt”.

“With the looming retirement of baby boomers, spiralling healthcare costs, plummeting savings rates and increasing reliance on foreign lenders, we face unprecedented fiscal risks,” said Mr Walker, a former senior executive at PwC auditing firm.

Current US policy on education, energy, the environment, immigration and Iraq also was on an “unsustainable path”.

“Our very prosperity is placing greater demands on our physical infrastructure. Billions of dollars will be needed to modernise everything from highways and airports to water and sewage systems. The recent bridge collapse in Minneapolis was a sobering wake-up call.”

Mr Walker said he would offer to brief the would-be presidential candidates next spring.

“They need to make fiscal responsibility and inter-generational equity one of their top priorities. If they do, I think we have a chance to turn this around but if they don’t, I think the risk of a serious crisis rises considerably”.

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